Innovative Industrial Properties

Q2 FY2026 EarningsQ2 FY26 results missed consensus on the top line but beat significantly on profitability and EPS. Revenue of $63.3M came in -4.92% below expectations of $66.6M due to tenant defaults and property dispositions. However, diluted GAAP EPS of $1.36 surged +32.68% above the $1.025 consensus, driven by an $11.8M net gain on real estate sales and improved interest income from life science investments. Despite sectoral headwinds in cannabis, the balance sheet was strengthened through the issuance of $402.5M in exchangeable notes and the full repayment of 2026 senior notes.